Spain Blocks Polymarket and Kalshi Over Licensing Issues
Spain joins growing list of countries shutting out Polymarket and Kalshi
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Spain has ordered internet service providers to block access to prediction market platforms Polymarket and Kalshi for operating without the necessary licenses under Spanish gambling law. This action is part of a broader trend of increasing regulatory scrutiny on such platforms globally.
- 01Spain's Ministry of Consumer Affairs initiated disciplinary proceedings against Polymarket and Kalshi for offering unlicensed betting products.
- 02The platforms were blocked due to concerns over a lack of safeguards for minors and self-excluded gamblers.
- 03Kalshi and Polymarket together accounted for nearly 88% of the $11 billion trading volume in prediction markets over the past month.
- 04Spain joins other countries like Indonesia and India in restricting access to these platforms, reflecting a growing regulatory trend.
- 05The blocking measures will remain in effect while the cases are adjudicated, expected to take three to four months.
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Spain's gambling regulator, the Directorate General for Gambling Regulation (DGOJ), has taken action against prediction market platforms Polymarket and Kalshi by ordering internet service providers to block access to these sites. The decision was made due to the companies operating without the required licenses under Spanish gambling law, raising concerns about the absence of safeguards for minors and self-excluded gamblers. This move is part of a broader trend of increasing global regulatory scrutiny on prediction markets, following similar actions in countries such as Indonesia and India. Over the past month, Kalshi and Polymarket have dominated the prediction market sector, with Kalshi recording approximately $5.9 billion in trading volume and Polymarket about $3.8 billion, together accounting for nearly 88% of the sector's total trading volume. The blocking measures will remain until the disciplinary proceedings are concluded, which are expected to take three to four months.
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The blocking of Polymarket and Kalshi may limit access to prediction markets for Spanish users, impacting their ability to engage in speculative trading.
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